Sell-Through Rate
Also called: sell through rate
What is Sell-Through Rate?
Sell-through rate is the percentage of stock received in a period that was sold within it. It answers whether a buy was the right size, which turnover alone does not.
Why Sell-Through Rate matters
Sell-through is the buyer's scorecard. A line with a low sell-through was over-bought regardless of how well it eventually sells, because the cash sat idle in the meantime.
Sell-Through Rate formula
Sell-through % = Units sold ÷ Units received × 100
Measured over the period the stock was meant to sell in.
How Sell-Through Rate works in practice
Measure it per line per season and use it to size the next order. It is particularly useful for fashion, festive and seasonal goods, where a second chance to sell does not exist.
Worked example
Receiving 200 units and selling 130 in the season is a 65% sell-through, leaving 70 units for markdown.
Frequently asked questions
For seasonal goods, high enough that leftovers clear at a modest markdown rather than a clearance.